Quality shares to hold for the long term

Most investors dont trade stocks frequently, so which companies should you buy and tuck away? By Kathryn Cooper

INVESTORS who want to get back into the stock market are being urged to buy quality companies and hold on to them for growth.

Many City experts believe equities offer relatively good value after three years of sliding prices.

They do not rule out further falls in the near future, particularly while there is still uncertainty about war with Iraq, but say now could be a good time for long-term investors to snap up shares.

Nigel Richardson, senior strategist at Axa Investment Managers, says: “British equities make sense for the long-term investor who is able to withstand short-term volatility.”

But investors should pick their stocks with care. Mike Lenhoff of Brewin Dolphin, a stockbroker, says: “Buy quality firms with strong management and good performance records. It is possible to pick up these at good prices following the stock-market slump.”